Dubai: Dubai International Financial Centre (DIFC) on Wednesday reported an 18 per cent increase in number of active registered companies operating out of the financial services free zone in 2014.
At the end of last year the financial centre had a total of 1,225 firms compared with 1,039 at year end 2013. In all 242 new companies were licensed during 2014, compared with 199 new companies licensed in 2013, representing an increase of 22 per cent in the number of new companies licensed in 2013.
“The year has been very good in terms of growth in the number of companies, increase in the workforce, growth in the total leased area and growing number of Middle East and Asian companies setting up business in the DIFC,” said Eisa Kazim, Governor of DIFC and Chairman of DIFC Authority.
The total workforce in the Centre rose 14 per cent during 2014 to 17,860 people, from 15,600 at the end of 2013. The number of net new jobs created in 2014 was 42 per cent more than the net new jobs created in 2013. Net additional leased commercial office space increased 15 per cent reaching 282,000 square feet in 2014, versus 245,000 square feet in 2013.
The growth in new companies means that on average, DIFC granted licence to one new company every working day of the year. Only the boom year of 2008 registered a higher number of new company licences.
Out of the 1,225 total active firms at the end of 2014, there were 362 financial services firms, up 11 per cent from the 327 last year; 682 non-financial services firms (additionally 10 firms were provisionally approved at the end of 2014), up 21 per cent from the 565 non-financial firms last year, and 171 retailers, up 18 per cent from the 145 retailers last year.
Leverage
This year the DIFC is looking to attract more companies from the Middle East, Asia and Asia pacific region while continuing to leverage on the growing presence of North American and European entities.
“Our focus will be on Asia and Asia pacific region along with our core markets in the Middle East. We will continue our efforts to attract firms from the US and Europe,” said Kazim.
DIFC officials said while the impact of financial crisis in Europe did not have any big impact on DIFC’s business, the sharp decline in oil price from the second half of last year has not impacted companies operating out of the Centre.
“The net attrition rate in the DIFC last year was about 3 per cent. Most of the companies chose to leave the Centre had their own business reasons such as global reorganisation, cross border mergers or restructuring of business models which resulted in their exit from the region,” said Chirag Shah, chief strategy and business development officer at DIFC.
